PHNOM PENH (Bernama): Cambodia’s consumer market is projected to hit RM70.7 billion (US$16 billion) by 2025, largely driven by rapid urbanisation and a burgeoning middle class coupled with increasing disposable incomes.
European Chamber of Commerce (EuroCham) Cambodia’s FMCG (fast moving consumer goods) committee chairman Sothea Rami Sambath said local consumers’ behaviour is changing rapidly due to the shifting market landscape.
With 80 per cent smartphone penetration, e-commerce sales of FMCG products have been growing at an annual rate of 20 per cent.
"The fast-moving consumer goods sector is not just vital, it is transformative. This industry comprises goods that touch nearly every Cambodian household, from food and beverages to personal care and household items.
"It generates approximately 25 per cent of Cambodia's GDP (gross domestic product), employing 500,000 workers across Cambodia and additionally supports hundreds of thousands more indirectly,” Sambath said at the EuroCham’s FMCG forum, "Tackling Counterfeit Goods and Illicit Trade”, yesterday.
This industry does not operate in isolation - it drives auxiliary sectors like logistics, advertising and manufacturing, amplifying its economic impact.
Major international brands see Cambodia as a gateway to Southeast Asia, with foreign direct investments in consumer goods accounting for 18 per cent of inflows in 2023, reflecting the sector's global appeal.
"Innovation is the heartbeat of FMCG. In Cambodia, we see brands responding to consumer preferences for health-conscious products, such as low-sugar beverages and organic foods,” said Sambath, who is also the chief executive officer of Auskhmer Import Export Co. Ltd.
Despite the rosy outlook, the sector considered the bedrock of Cambodia’s economy, is plagued with weakness that could stifle its progress, he cautioned.
He said the time to register new products takes about six months, considerably longer than in regional peers. While the 15 per cent corporate tax rate is considered moderate, ambiguities in tax regulations leave businesses vulnerable to arbitrary penalties.
In the advertising sphere, Cambodia is constrained by a lack of clear digital regulations.
In addition, counterfeit of FMCG products - estimated at a three to five per cent infiltration rate - further harms the sector and about 20 per cent of FMCG products are not registered in the Kingdom, he said.
"The FMCG sector is more than just an economic driver - it is a barometer of our nation’s progress and aspiration. It is a conduit for growth, opportunity and national progress. Its challenges are real, but so is its potential.
"With collaboration between industry leaders, policymakers and consumers, Cambodia’s FMCG sector can continue to flourish, creating prosperity for millions and positioning us as a leader in Southeast Asia,” said Sambath. - Bernama
